July 8, 2017

DONALD WHO?:

Average tariffs between the two sides are already low, but prizes are still there to be grasped. Exporters from the EU pay €1bn ($1.1bn) in export duties to Japan each year, and on agricultural products face average tariffs of 21%. JEEPA will slash Japanese tariffs on beef, pork and wine, eliminating 85% of the tariffs on agricultural food products going into Japan. European producers of Roquefort cheese or prosecco can cheer: their products become two of 205 protected "geographical indications". Similarly, only feta from Greece will be sold under that name.

Tariffs on European exports of textiles and clothing will also be cut. When the deal enters into force, Japanese tariffs on shoes will drop from 30% to 21%, and then to zero after ten years. The Japanese have won concessions, too. Tariffs on Japanese cars going into the EU are currently 10%, but will be lowered over seven years. An assessment of the impact of the deal (before the final details were agreed on) suggested that almost half of the benefit to Japan would be from these lower tariffs. It found the deal could raise the EU's exports to Japan by 34%, and Japan's to the EU by 29%.